Indians lose Rs 662 cr to visa refusals: US, Schengen travel still a dream

"I submitted all the documents, yet my Schengen visa or US visa was rejected." This is a complaint frequently seen on social media when searching for visa rejection experiences.

 

In December 2024, social media was flooded with accounts of Indian travellers struggling with visa rejections, particularly for the UAE. Many shared their experiences of difficulties securing visas to a destination traditionally viewed as welcoming for tourists. The UAE, which accounted for 24.8% of outbound Indian travellers between January and October 2024, remains one of the most popular destinations for Indian tourists. However, Dubai's emigration department introduced stricter requirements last year for tourist visas, leading to visa rejections.

 

But it's not just the UAE. Rejection rates for visitor visas have soared in the post-pandemic era across the UK, Australia, New Zealand, and Schengen area countries. And India's global ranking on the Henley Passport Index from 80th to 85th in 2025 is unlikely to help the situation.

 

The Henley Passport Index is a global ranking of passports based on the number of countries that their holders can visit without a visa. The index can help to understand how passport strength impacts visa rejection rates.

 

Over the past year, Indian travellers have collectively lost approximately Rs 662 crore due to visa rejections from these destinations.

 

Surge in rejection rates

 

According to data from individual country migration and statistics portal, for every 100 visa applications submitted, the following rejection rates have been recorded in the latest 12-month period:

 

New Zealand: 32.45%

Australia: 30%

UK: 17%

US: 16.32%

Schengen area: 15.7%

 

These figures reflect significant increases compared to pre-pandemic levels. New Zealand and Australia saw the steepest rises, with rejection rates up by 20 percentage points (pp) and 14 pp, respectively. The UK and Schengen countries experienced increases of 6 pp and 5 pp. Interestingly, the US bucked the trend, with a decline of 11 pp in its rejection rate.

 

Monetary loss for travellers

 

Visa rejections often lead to substantial financial losses, particularly since many visa application fees are non-refundable. In 2024, Indian applicants suffered the following estimated losses:

 

Australia

 

Total visa applications lodged: 377,614  

Visas granted: 261,857  

Visas rejected: 115,757  

Rejection rate: 30%

 

Monetary loss: Rs 93 crore

 

New Zealand

 

Total visa applications lodged: 103,911  

Visas granted: 70,197

Visas rejected: 33,714

Rejection rate: 32.45%

 

Monetary loss: Rs 72 crore

 

UK

 

Indian nationals accounted for 25% of visitor visas granted (511,167). While there is no official data on how many were rejected, a report by Mint puts the rejection rate at 17% and a financial loss of Rs 116 crore.

 

USA

 

Total visa applications lodged:  

Visas granted: 986259

Visas rejected: 160,958

Rejection rate: 16.32%

Monetary loss: Rs 257 crore

 

Schengen

 

Total visa applications lodged: 966,687

Visas granted: 811,290

Visas rejected: 151,752

Rejection rate: 15.7%

Monetary loss: Rs 124 crore

 

(Total money lost = number of visas rejected x visa fees)

 

Visa rejections can lead to financial losses beyond application fees. Many countries mandate pre-booked accommodations, travel insurance, and flight tickets, which are often non-refundable. For instance, last year Delhi-based Mayank Sharma lost Rs 3.5 lakh on flight and hotel bookings after his Schengen visa was denied. Keyur Shah and friends faced similar issues when Slovenia rejected their visa applications, citing non-refundable hotel bookings as a concern.   

 

The US, despite opening more visa appointment slots across its consulates in India, continues to face criticism for lengthy waiting times. Meanwhile, countries such as Australia and Schengen nations have imposed stricter visa regulations and higher fees, further burdening applicants.

 

Notably, the US will increase visa appointment slots by one million in 2025, as confirmed by Secretary of State Antony Blinken.

 

Reasons for increased rejections

 

Several factors contribute to the rise in visa rejections. According to several immigration portals, some of the factors are:

 

Higher application volumes: Many visa processing systems remain strained as applications surpass pre-pandemic levels. Take the US for example:

As of January 17, the wait times for B1/B2 visitor visas in India are:

Hyderabad: 429 days  

Kolkata: 436 days  

Mumbai: 438 days  

Delhi: 441 days  

Chennai: 479 days  

 

Stricter financial proof requirements: Applicants are now required to provide more robust evidence of financial stability to cover travel expenses.

Tighter immigration policies: Anti-immigration sentiment has led to stricter checks, with countries alleging misuse of tourist visas for work or extended stays.

Policy changes: Examples include the UAE’s requirement for visitors to have at least AED 5,000 in their bank accounts, a return ticket, and proof of accommodation. Similarly, Canada suspended its 10-year multiple-entry tourist visas in November 2024.

 

Even popular tourist hubs like Bali have implemented stricter rules, including jail terms for those violating visa conditions. Additionally, countries such as the UK, EU, and New Zealand raised tourist visa fees sharply in 2024.

 

From June 11, 2024, Schengen visa fees increased by 12%:

Adults: €90 (Rs 8,000)

Children (6-12 years): €45 (Rs 4,000)

 

Countries that fail to cooperate on repatriation may face fees as high as €135 to €180 (Rs 12,000 to Rs 16,000). New Zealand also implemented fee hikes for tourist visas from NZD 119 to NZD 188.

 

Growing outbound travel from India

 

India’s outbound tourism industry has rebounded strongly post-pandemic. Between January and October 2024, approximately 25 million Indians travelled abroad, with holidays being the second most common reason, according to the tourism ministry. This represents an 8.5% increase compared to the same period in 2023 and a 12% rise from 2019. Final figures for 2024 are expected to surpass previous records.

 

Easier access to travel-related loans has also contributed to this growth. A Paisabazaar survey conducted between January and June 2023 revealed that 21% of respondents who availed personal loans did so for travel purposes.

 

Shift to visa-friendly destinations

 

While traditional destinations remain popular, many Indian travellers are now exploring visa-friendly countries with lower costs. Destinations such as Thailand, Vietnam, Sri Lanka, Malaysia, and the Philippines are gaining traction:

 

< Malaysia saw a 50% increase in Indian visitors.

< Thailand recorded a 31% rise.

< Vietnam and Sri Lanka experienced increases of 28% and 24%, respectively.

 

These countries often require less stringent documentation and benefit from weaker currencies, making them attractive alternatives.

 

Tips for Indian travellers

 

To reduce the risk of visa rejections, New Zealand immigration recommends:

 

1. Comprehensive documentation: Ensure all required documents, such as valid passports, proof of funds, and travel itineraries, are submitted.

2. Clear travel intentions: Demonstrate genuine reasons for travel and provide evidence of return plans or commitments in India.

3. Financial stability: Show sufficient funds to cover your stay. For instance, New Zealand requires NZD 1,000 per month or NZD 400 per month if accommodation is pre-paid.

4. Health and character checks: Address any criminal convictions or health issues by providing necessary certificates.

5. Consistency: Avoid discrepancies in your application and supporting documents.

6. Sponsorship proof: If sponsored, submit documents such as bank statements and employment agreements from the sponsor.

 

Travel insurance benefits

 

Travel insurance can help mitigate losses due to visa rejections:

 

"Some plans offer refunds for visa fees if the rejection was beyond the applicant’s control and documentation was complete. Insurance can also cover non-refundable flight and hotel bookings in case of unforeseen emergencies, such as illness or injury, said Manas Kapoor, business head – travel insurance at Policybazaar.com.

 

“There are currently a few plans available that offer the added benefit of refunding visa fees in case of rejection,” he explained.